on a bank holiday no more spending for a week or two not much fun or laughter on a bank holiday so of course the bank holidays are here just as we predicted on price report yeah absolutely we've been saying for a number of years that at some point two things are going to happen one bank holidays and number two the same people who are committing these mass of frogs around the world are going to reach in your bank account and start stealing your money this is the beginning of a major trend money in the bank is not safe only keep money in the bank you're willing to lose yes and of course one thing that is actually on the positive side about this is that at least now you see that you see that your wealth is being stolen because we've been talking about that for years is that quantitative easing has been stealing your money is confiscation as well redistribution is taking from the savers and sending to the speculators so i want to look at the same sort of deposit levy the savings levy the savings tax the wealth confiscation that has happened over in the u.s. and u.k. already for years now first this is a tweet from jim rickards if you think u.s.

is different from cyprus it's not four hundred billion dollars per year goes from depositors to banks via fed rate policy fast shade. the interest rate policy is our bank theft by another name but that didn't get the economy stimulated the way they wanted it to but these steps are still there that were incurred by the banks who took all the money so now they're just going to give up all pretense of enacting a policy and they're just going to reach in and steal your money. and let's see what has happened in the u.k. which has had radical quantitative easing and we've talked often to save our savers simon rose well he's got actual he's broken down the exact number the exact pounds that have been stolen from pensioners and savers for years of savers propping up the banks and subsidizing debt save our savers has cost. later that the total cost

to savers in the four years since march two thousand and nine is two hundred twenty point four billion pounds max that's on a total savings in the u.k. of one point one trillion pounds so he's to basically half of it is because of inflation and half of it is because of reduced interest on the savings account very well even the bank of england released figures six months ago they said for every pound that people are saving on their mortgage through artificially depressing interest rates the economy is losing two pounds from interest income that would have gone in these pensioners accounts and spent in the economy so it's a form of financial suicide and there was as a result there was no growth so now they're just going to reach in and steal your money was shocking to me so there are still people in the media who are trying to rationalize this and justify this claim that it's something other than just state sanctified of theft so remember saver saver says two hundred twenty

point four billion pounds of one point one trillion that's almost twenty percent folks so where is that up where where are the people storming you know the prime minister all power how if interest rates are five percent in the u.k. adventurous rates are five percent of the united states the amount of money that would be circulating in the economy not sitting on corporate balance sheets like apple is projected to now one hundred seventy billion in cash in a balance sheet the next two years if interest rates are at normal rates to reflect the normal historical trends the economy would be in a growth the g.d.p. would be expanding why they keep it a zero percent because it lets speculators speculate for no cost they keep the winners we keep the losers if perpetuating is part of a new form of financial fascism so why all the quantitative easing why all the deposit levies why tarp why m.f. global why why lehman brothers why the one to the well. why all these wild

confiscation schemes what is happening well actually if you go to mass. one thing it says there about him is that he is often talking about the notion of accounts max explain to us what an error account is well you see with the cyprus situation in other words the country had built up a number of faulty trade securitized trades that were never appearing in anyone's books officially and they kept them in the air account off the balance sheet and the idea that at some point if some broke they will leitch those errors back onto the normal balance sheet by pairing those losses against new found games but those games and those growth is never coming so those errors those losses are now manifesting themselves on these balance sheets without any any way to hide it so that side is gone out all these all these errors and broken trades and and losses are are sticking out like a sore thumb and so the only way to to square the circle the only way to pay it off

is just steal people's money from their accounts to pay off the debts from two years ago three years ago four years ago and it's been sitting in these erika's for years well at davos the world economic forum in two thousand and eleven we didn't see it we didn't cover here on the kaiser report the fact that bankers there said that we need one hundred trillion dollars so that was their number that's how much they need that's how much they are going to at the end of the day have to confiscate to inflation through deposit levies through a id through lehman brothers through m.f. global the world but before there was m.f. global and a lot of people are saying that the cyprus situation reminds them of junk or zine and j.p. morgan just taking segregated client funds which is again supposed to be a taboo nobody's supposed to do that just like you're not supposed to take deposit or funds but before all of this there was rev and i want to go to two thousand and five october two thousand and five refco had just collapse it was a commodities futures broker and it collapsed and here's a song next time. two

hundred sixty really. just forty two point. zero when it broke many years ago at this time at this time this was really the beginning of this new era of post regulatory financial securitization and jim rogers i remember at the time got tagged pretty good he's not been vocal about it i

wish he was more vocal about it he kind of set the stage for the m.f. global and these other confiscations that have come down the road i want to look at one in particular rezko situation that applies to the global economy and applies to cyprus it applies to ireland iceland the u.k. the united states tarp all of this collapse and all of this confiscation of wealth so hillary rodham cattle futures controversy is the name of the wikipedia entry and in one thousand seventy eight with only a thousand dollars certainly living in this house here hillary rodham clinton gave to read one thousand dollars that was almost her net worth ten months later it was worth one hundred thousand dollars and marshall school of business looked at it and they found that two thirds of her trade showed a profit by the end of the day she made them and eighty percent were ultimately profitable many of her trees took place at or near the best prices of the day only four explanations can account for. remarkable results blair her broker address may

have been an exceptionally good trade or hillary clinton may have been an exceptionally lucky or blair may have been front running other orders or blair may have arranged to have a broker fly gently assign trees to benefit clinton's account but no option number four is the is the option that i know for a certainty is what they were doing there what we call it look back trading in my day i think it's also called something else the long straddle is another name for this basically brokers put on simultaneous option trades or futures trades going long and short at the same time but not assigning account numbers and then at the end of the day we close out those positions you put the loser into a corporate account that needs a loss for tax purposes let's say jamie diamond is a loss for the quarter we'll take the loss the losing trade etc any corporation to sign up for that the winning trade they put into his account because it's a political influence game they know that he's about to become

a major political figure refco wants friendly regulations hillary clinton is the prostitute in this case who is fronting her account allowing the prostitution of the financial markets to occur in her account under her skirt and the result is we know is more deregulation and more bastardization of the financial system and she says she's guilty she's culpable she falls into that category and so finally back on cyprus max keiser cyprus president let me securitize gas which is priced at a two year discount over a volatility index spread out of the money cake option right what i'm saying there is that up until two thousand and seven going back to the beginning of the bull market in bonds it's goes back to one thousand nine hundred three all the criminality committed on wall street and around the world could be hidden by simply repackaging all the bad trades extending the maturity and reselling it because you were doing this against a interest rate scenario that was false. you know bonds were in

a bull market rates were decreasing and all of the all of the detritus of the fraud that committed all around the world could be just stuffed into these recent characterize securities that were bought up by pension accounts and huge passive pools of capital and sold when that bond market essentially ran out of steam in the last twenty four months it's impossible to hide it anymore but they this is not going to stop them from trying to securitize everything so in the cyprus deal they're talking about well let's to securitize the gas let's trade gas futures let's put into people's accounts let's let's replace their money that they worked hard with a claim on some for cock the future gas revenue that may or may not appear that will satisfy them and of course interest rates should keep going down because we manipulate interest rates and they'll get be satisfied they'll be made whole other words they just keep blowing this this this challenge of vomit in people's face

the people in cyprus are being knocked down with projectile vomit coming out of the mouth of the e.c.b. and the i.m.f. christine lagarde is projectile vomiting into the face of the people of cyprus and saying that show and they're saying i'm not eating vomit and i'm going to profit just either kristie and then the new york times all right what's the big deal i mean you know i don't see anything wrong here meanwhile he's sucking christie's vomit down as fast as he can stay here but thanks so much because a report thank you max don't go away much more coming your way. been living in the seventeenth century. strict.

clearly distinguish between. your family and for me. could you take three. three. three. three. three. videos for your media project. welcome back to the kaiser report i max kaiser time an attorney reggie middleton a boom bust blog dot com welcome back to the kaiser report thank you could read you last talk about cyprus having crossed the rubicon of course and the mere thought of

confiscating what is. put in a bank is basically. revealing to everybody exactly how for you to go to fill a hole that probably can't be filled think about it what is the purpose of a bank you know you take a bank is a place where you put your money to keep it safe and to hopefully get it back with potential return on it with interest so if you put your money in the bank and some will confiscate any amount at any level is a bank the entire banking industry is now changed but we should have been warned because remember during the m.f. global crisis the depositors to account alders were made subordinate subtly to the creditor j.p. morgan or jamie diamond completely in an illegal fashion they broke the law they want to edit their customers and they said they stole a billion dollars so. that was really the warning shot wasn't that the game that

the rules have changed that no deposit a safe anymore. i know the rules have changed you know the rules have been revealed you know they're probably always have been the same what is interesting is the fact that the banking system in the e.u. in the e.u. area is so fragile to begin with and anybody who came up with this idea obviously doesn't understand bank finance you know the most ubiquitous the most important and the most fleeting of all banking finance sources is the deposit because they can withdraw their money and it's the oldest or the should be able to and that is the money that is the most feeding and at the same time. if you go into any buy in the . holders you know the positive of this but the deposit holders the thought of this to be less powerful and that's been the story since two thousand and seven two thousand and eight when this global financial crisis first hit there's all the central banks all the policymakers barack obama and david cameron all the world

leaders have bent over backwards to protect the bondholders by imposing all kinds of bailout schemes restructuring schemes quantitative easing schemes to protect bondholders the other just stealing money from depositors to pay bondholders going back sixty seventy years isn't this fascism. appears to be it's also you know so if the fetus when you have deposit is for your bank. that they would need a bank you have the confidence that we can once a couple of the banks we can counter parties to that bank then pull their support out nobody wants to face as a counter party if they think their banks primary funding source which are the positives are going to run deposit down seemed to run if you tell them i'm taking your money now what about the mainstream media for example you know you're in the blog us share but you know but you've now emerging as the go to guy in the high tech space and i'll get to that in a minute with your calls on. apple and google and the rest and you've really

emerged as one of the premiere tech analyst really in the country but what about the mainstream like a new york times for example aaron sorkin writing that all those really matter that the money was stolen from depositors it's all good i mean aren't they just some just some degree also responsible for this the soft fascism i'm going to say something a lot of mainstream media guys are not going to like i mean they're reporters ok most importers. are not analytical by profession or sometimes by nature so they say something that my on its face appear to be extremely you know it ok but this is could actually be wrong ok either way once someone important says it it tends to be repeated by those who simply follow the flow and then you have something that may be backwards what is stated but that's propaganda. that's propaganda and they're pushing

a line ok let's talk about the cyprus story how it will impact bank loans in europe you know it last time around the show you talk about france france already had trouble people trying to get money out of the bank and they changed the rules in terms of how much you could get per a withdrawal they're already tightening the screws on depositors how does the map in europe look who's next after cyprus how does it all shake out your thoughts cyprus is a catalyst this is something that i believe is going to happen anyway the bank was actually did it happen it's just that the the the depositors were a backstop were prevented from taking but so much money out of the real bank one of the larger banks are going to be the kind of party runs cyprus brings it is kind of this and it makes it very difficult to get direction i could see it will happen as to where it's going to happen for us it's hard to tell my guess would be and i can see now i'm still working on a project but i've found several banks. for you know. in europe as a super hero on the central bank's balance sheet. the same as it's appear on sixty

seven of these other banks products but in london they call that the cation and it's legal ok well i have the documents to show that it's not legal because the documents have a group called this and it's very clear now the documents of course of that missing now but just to be clear you're saying that banks in europe have pledged same collateral multiple times an illegal fashion above and beyond any any possible here in populations game real bifurcation should not be possible if you've already pledged it because you have to own it to get it ok now what about italy the economist the commercial banks just the pages of handles that italy should also take a fifteen percent cut of deposits and they are telling depositors they're telling to take this threat seriously what do you think what you think i dare i like to see it happen as a good t.v. . you know when you take you know you don't know who these depositors are what if you know i mean italy is famous for its organized crime family so if

you take the fifteen percent of somebody you know out of sicily or naples or somebody like this from what i understand these are centers of organized crime isn't there a risk of retribution are we going to find bankers whacked increases employment because then you hire people still if you call them one and so you know there's always a plus and minus they give you an example of what happened in cyprus ok cyprus. is going to take a levy basically take money from deposit holders and exchange or give them bonds backed by the revenue output of their gas my gas my ownership is not a seventy there is because turkey is disputing ownership of it ok turkey versus cyprus turkey has a standing military cyprus doesn't turkey has more geo political power versus cyprus ok it's a good chance as our president and strong standing there going to put through these bonds to that this is soon that cyprus does someone. outmuscle turkey

these are gas mines that are not developed there are no standing pipelines to turkey or to create to get to rest has to be built up it has to be built by a country that's being built out that is actually stealing from its own the positives to fund. and a bailout from the c.p.p. so basically you know what you're doing is you're pledging something you don't own that you can't afford to build out to justify taking money from people who trust the banking system what they've done is they've destroyed outright destroyed trust integrated system is confidence a lot of the banking system run because no bank standing in the world has the liquid assets to pay the positive thought it wants which is the definition of a bank so this is very interesting once the conference is stored in cyprus where does the go next i would have much confidence in much of the core of you up outside of maybe two different two countries and most of the states. in specifics later on next couple of weeks ok let's move over to london in the london a well you say ben

bernanke is to blame how so. blank is the catalyst of course the brain but ben bernanke you drop interest rates to zero they kept in the zero you know the bank business model is i take money i have a dollar of equity i'll borrow ten dollars of capital you know in debt and then i go into business with it usually i loan you money right at my cost and then you pay money back now but you're saying it's a moral hazard in other words cheap interest rates quantitative easing zero percent interest rates make the cost of crime cheap and the moral hazard just grows exponentially because nobody is running them in there's no regulations they say ok here we are in london whale is supposed to be no proprietary trading for the volcker rule will bypass the law will make it risky bets will get bailed out by the government anyway and so this is you saying low interest rates not only do they deprive savers of income and deprive the economy of that economic activity but it just feeds criminality and also it causes criminals to reach. you know if you get

once you're hungry you do more things for food so you know it's not just to say it was not getting return on investment it's the banks so the banks have to do more aggressive business to did that right so the low interest rates not only deprive savers of income but that also deprives banks of income so they take even riskier bets right now what about mark carney they're bringing him in from bank of canada to run the bank of england in a couple of months with this idea of getting the house in order the only possible outcome of this i think would be some massive money printing and more quantitative easing and more inflation coming to the u.k. had he said well you know it doesn't matter who you know chaired the bank you know countries get revenue three different ways you can print it right you can generate economic activity ok or you can tax it ok and those rules don't change you know they put me in as a great to be here there's not much i can do different what i might do is start

cutting some of the you know what i would consider for as an activity but if you do that you want a political problem so you know it doesn't matter who you bring it you know you can bring in. you know and you still have the problems the best way and the most efficient way to cure the central banks problem is to flush out the unproductive assets in order to do that you have a graphic real losses dollars and i'll take a loss right not going to happen. exactly all right let's talk about the technology space you made one of the best calls of the decade sell apple at seven hundred by google nobody else is making that call the time one of the best calls of the past ten years by far now let's talk about apple a little bit moody says apple's cash hoard could hit one hundred seventy billion this year is that what's going on there tells saving money as a call option on the future that's basically it is the cash or does the call option on future volatility. the problem is as cash if i were apple management i would

start taking my cash and i would spend it on developing cloud infrastructure immediately and i was spending our r. and d. for the hardware because apple has said she lost the race what's it called the mobile handsets you know that's not available to the populace for several years out but if you take a look at a high and android handset and apple and said it's such a big disparity it's not going to be. it can't be called within one cycle apple needs to build out the infrastructure in the cloud. and get away from gadgets they have to build up infrastructure in the cloud and they have to improve their gadget but the problem with the gadgets is right now you heard it here hardware is dead the marginal gadgets are shrinking and we shrink and continue to shrink just like you did and you know at one time with the i.b.m. p.c. . computer you had very you know white margins the same thing with the apple google recently i believe they bought motorola right all right part of motorola the whole

thing and so pieces of ok at the time they were saying that was a bad idea is this how was i going well it's the same thing google do with the g. mail with. ground station which is now google voice well google is doing is taking several industries and using those industries to further the ad revenue business model what they're going to do specifically and i could market google's map specifically they're going to take the motorola hardware or yeah they're going to offer very high end hardware at a very subsidized price basically go buy a high end sit for what you pay the subsidized rate for. but have to be locked into your contract and they're going to change the business model because samsung and google are now in competition stance in the struggle for android so what google's going to do is they're going to attack the sense of business model by going after the margins so they go off for diversity just like if you go to dell website right now you could build your own computer or the memory hard drive to tell. don't know

they're still in business but i read about the got there thanks for being on the kaiser report very welcome and that's going to do it for this edition of the kaiser at par with me max kaiser stacy everett our thank my guests reggie built up bill bus blog the same e-mail place this kaiser reported r t t v dot are you the next time ask as i. speak your language. programs and documentaries in arabic in school here on all t.v. reporting from the world talks about seventy odd p.

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